General Motor's EV ambitions General Motors Co (GM) surpasse | Rakuten Trade Ideas 🎯

General Motor's EV ambitions

General Motors Co (GM) surpassed Ford Motor Co (F) to become the country’s second-best seller of all-electric vehicles (EVs) during the first quarter, trailing only industry leader Tesla Inc (TSLA).

GM said it sold 20,670 EVs during the first three months of the year. GM also reported a 17.6% rise year-on-year to 603,208 vehicles in the first quarter of 2023. The sales increase mainly due to the demand of auto sales pent-up for personal transport continued to outpace supply.

GM Executive Vice President Steve Carlisle mentioned that GM gained significant market share in the first quarter, pricing was strong, and inventories were in excellent shape. Analysts believe that GM plans to surpass Tesla in EVs sales in the coming year, even though GM still lags far behind Tesla in EVs sales.

GM confirmed that it expects to build 50,000 EVs in the first half of 2023 and “double that” in the second half of the year as Lyriq production ramps up and shipments of the electric version of the Chevrolet Silverado pickup begin later this spring.

According to the GM CFO, Paul Jacobson, the company is buying out 5,000 salaried staffers globally as part of a cost-cutting move that will save US$1 billion annually starting this year. The cuts should also deliver roughly half of the company’s border goal of saving US$2 billion a year and will result in a US$1 billion charge in 2023. The voluntary buyouts cover 6% of GM’s employees and avoid layoffs.

Jacobson said the company is also staying lean as a precaution against the risk of a potential economic downturn.

The share price of GM is down -13.71% year-to-date (1-year), and the last price was US$35.73

Bloomberg consensus rating has 16 Buys, 11 Holds, and 2 Sells with a 12-month target price of US$49.52

Sources: CNBC, Reuters, Bloomberg

As at 9pm, Dow Jones Futures 33,548 (-0.09%).

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